Saving You Money For Life

According to the Life and Health Insurance Foundation for Education, although 81 percent of Americans say they need life insurance, just 41 percent own individual policies. That number drops to 25 percent for households earning between $25,000 and $50,000.

If you’ve been considering life insurance or want to check that your current policy provides enough coverage, the following tips could help:

• Don’t Put It Off – If someone depends on you financially, it’s crucial that you obtain the right amount of life insurance coverage for your family.
• Look Beyond Employee Plans – Many workplaces offer an employer-paid basic life insurance benefit, usually equal to one or two times your annual salary. Unfortunately, this is usually not enough. And what happens if you change jobs-or lose your job? Not all policies are portable, and there’s no guarantee your employer will provide this benefit.
• You Can Afford It – Term life insurance rates are often lower than you might expect. In fact, Money magazine reports that with term, compared to a whole life policy, “you can purchase more coverage for fewer dollars, and rates have been dropping steadily in recent years.”
• Stay Covered – How much coverage do you need? That depends on your circumstances. However, many financial experts recommend the following rule of thumb: Purchase an amount of coverage equal to six to 10 times your annual gross income. If you’re still unsure, check out a life insurance needs calculator.
• Stay Up-To-Date -It’s a good idea to review your coverage every few years or when changes occur, such as buying a house or having more children. When was the last time you had a life insurance policy review? If it’s been more than two years, chances are you could benefit from a review.

You can leave a response, or trackback from your own site.